COVID-19 FINANCIAL TIPS

The Financial Coaching Corps of the Community Service Society of New York would like to share
resources and financial tips for New Yorkers who may be struggling during the growing COVID-19 crisis.

Stay informed about the disease by visiting the CDC website and NY Dept of Health Website, or by calling
a special COVID-19 hotline: 1-888-364-3065.

This document will be updated as more information becomes Information on programs and
available.
resources changes frequently during
Contents:
this time. Before making any financial
• Budgeting in a Crisis decisions, be sure to verify the
• Prioritize Necessities
• Manage Financial Obligations information by checking with the
• Protect Your Credit relevant financial institutions and
• Retirement Accounts
• Beware of Scams government agencies for any updates.
• Additional Resources
We urge everyone to check trusted
sources like the NY State Website and
Budgeting and Planning: NYC Gov Website.

• Create a Budget: Now is a valuable time to create or review

your household budget in order to prepare for any financial difficulties in the coming weeks and months.

• Assess your Cash Flow and Resources:

° Determine how much money you have to work with for budgeting purposes. Start by listing your
available resources (cash on hand, bank accounts, emergency funds, or other assets.)

° Assess your available income. During a crisis, some expected income may not materialize, so
only include income that is available to spend. For information on applying for Unemployment
Insurance go to Benefits Plus Online.

• Budget Tools:

To get started, find a straightforward way to track and review your spending and income each
month. There are a wide variety of tools available to help budget and track expenses. Find one that
works for you and your household. Examples include:

• You Need a Budget (YNAB) is a budgeting method that helps to break the paycheck to
paycheck cycle. The software is $84 a year, but YNAB provides excellent free online budgeting
classes, guides, and videos. YNAB uses bank level internet security measures.

• Mint by Intuit (creators of TurboTax) that downloads information from users’ financial institutions
to help track and categorize monthly spending. The software includes advertisements. Mint
uses bank level internet security measures.

• CFPB Spending Tracker is a free pdf tracking tool available through the Consumer Financial
Protection Bureau. This tool is included in the Bureau of Consumer Financial Protection’s Your
Money, Your Goals: A financial empowerment toolkit.

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• CSS/FCC Budget Worksheet: Use the Financial Coaching Corps Budget Worksheet to analyze
and adjust your household budget.

• Create a Timeline:

Aside from your household budget, it may also be useful during the crisis to keep a financial
calendar. A calendar can inform the budget and provide useful information, but should not be used
to replace a regular budget.

° Income: Create an estimated schedule for any upcoming income (wages, unemployment
insurance, Social Security and other benefits), along with the amount you expect to receive.

° Bills: List and categorize your regular monthly bills along with due dates for your bills.

° Auto-Payments: Take time to review your bank statements. Create a clear timeline of regular
auto-payments and direct debits that are currently active on your bank or credit cards.

° Annual/Irregular Expenses: Do not forget to include larger, less frequent expenses like auto
registration fees, deductibles, and self-employment taxes as well. In order to save for the
expense ahead of time, divide the total expense by 12 and set aside 1/12 of the overall payment
each month.

• Cut Discretionary Spending:

Consider strategies to cut down on discretionary spending. Free up room in your budget for the
priorities. Reduce or eliminate the following:

° Spending that increases household debt (purchases on credit cards, new property, new auto
loans, new leases, and other financed purchases),
° spending that can be deferred or negotiated (monthly bills, car insurance, student loan
payments, subscriptions),
° non-emergency savings, and
° spending or savings for non-necessity luxury items, travel, vacation.

Strategies to Reduce Spending:

° Eliminate auto-payments to avoid over-drafting accounts,

° Request to different due dates that line up with when you receive income,
° Switch to using debit cards or cash. Many studies show that consumers spend more with credit
cards than with cash.
° Wait 24 hours after adding items to your cart before making online purchases,
° Plan ahead for in-person shopping by bringing only what you want to spend in cash.

• Build an Emergency Fund:

• Why: An emergency fund is a cash reserve that is specifically set aside for financial emergencies.

• How much: The amount you need to have in an emergency savings fund depends on your situation.
In the current crisis, an ideal emergency fund would contain 3-6 months of necessary household
expenses. However, even 500 dollars can prevent a crisis, so try to save as much as you can.

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• Where: An emergency fund should ideally be saved in an FDIC insured bank or credit union
account. Avoid savings options like CDs or IRAs which will charge fees or penalties to access the
cash in an emergency. Stick with a regular checking or savings account, or explore online options
known as high-yield savings accounts that pay interest.

• How: If your household does not already have any cash saved, consider the following sources as
starters for an emergency fund:
° Your household’s economic stimulus money,
° Your household’s federal or state tax refund,
° Amount of unemployment benefit above your typical weekly income,
° Cash saved as a result of social distancing like travel and entertainment expenses,
° Cash saved as a result of automatic student loan forbearance, or
° Cash saved through budgeting.

• Using Your Emergency Fund:

Emergency funds are designed to carry you through temporary financial hardships, which many
households are experiencing right now. However, in order to make an emergency fund last, be
strategic when using it.

If your household already has an emergency fund or source of cash that could be used as one,
use a budget to assess how long that cash could cover household necessities like food and
rent. Before spending emergency fund cash, ask yourself the following:

(1) Is the purchase a household necessity?

(2) Have you called the service provider to request that the payment be delayed or deferred?
(3) Have you exhausted other available financial supports (such as unemployment insurance)?

If you can answer yes to all these questions, it may be time to use your emergency fund.

• Planning as a Household:

• The Consumer Financial Protection Bureau recommends that families schedule time to discuss
family finances together, including income, expenses, debt, and investments. Maintain a list of
account numbers, usernames, security questions, and passwords and store it securely. Provide
access to a trusted loved one, spouse, or a Financial Caregiver.
• Estate Planning: Estate Planning is preparation of tasks that serve to manage an individual's assets
and income in the event of their incapacitation or death. Most estate plans are set up with the help
of an attorney experienced in estate law. To learn more, schedule a free session with a Certified
Financial Planner through the Science Industry and Business Library.

Prioritize Necessities:

While budgeting is powerful tool to manage household finances, it may not be enough to prevent a major
cash shortfall during a crisis like COVID-19 pandemic. If, after reducing and eliminating excess spending,
and tapping emergency funds, you are still not able to pay all of your bills, it is time to prioritize necessities.

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• Needs, Wants and Obligations: Before you prioritize, understand the distinction between needs,
obligations, and wants.

• Needs: Needs or Necessities are the things required for survival and to maintain your job, shelter,
and health. Pay for needs first. Examples: rent, utilities, food, medication copays, transportation
costs, phone, internet, health insurance.

• Obligations: Obligations are any financial commitment that one has a duty to pay. This includes
debt (credit cards, student loans, court judgments), non-debt obligations (child support, taxes,
insurance, dues), and obligations to oneself (emergency savings, 401k).

• Wants: Wants are expenses that are not required for survival or that you have no obligation to pay.
Pay wants last. Examples: vacations, furniture, luxury goods, new clothes, gambling, grooming, and
gifts.

• First Things First: Always pay for needs first, then obligations, and wants last. In a crisis, some
needs will be greater than others. For example, buying food is more important than paying rent or
utilities. Pay for what is necessary to stay safe and well during the crisis first.

Resources: Listed below are some of the resources that may support individuals who are struggling to pay
necessities. For more resources and information please visit CSS’ Benefits Plus Online and open the
“COVID-19 Resources” Chapter Listing.

• Food:

• Food Pantries: There are a wide variety of organizations supplying free food to NYC through food
pantries, free food markets, community kitchens and restaurants providing free food.

• NYC Free Meals: NYC free meal programs provide ready to eat meals for all New Yorkers. There
are no eligibility requirements, registration procedures, identification, or documentation
requirements.

• Home Delivered Meals: Home delivered meal programs continue to be available during the COVID-
19 pandemic.

• SNAP/Food Stamps and Other Food Benefits: See Benefits Plus Online for updated info on a
wide variety of food-related benefit programs and services.

• Housing:

• Renters: There is currently an active Eviction Moratorium for the entire State of New York set to
expire August 20th, 2020. This means that no tenants may be evicted from their apartments until
that time. However, during the moratorium rent payments are still due on the usual date. So, if you
can pay your rent, you should continue to do so to avoid accumulating rental arrears debt, and the
potential of future eviction. However, if needed, NY tenants may use their Security Deposits to pay
rent that is owed or will become due.

• Homeowners: Under the CARES Act, owners with federally backed mortgages have the right to
request forbearance, and NY State has also directed NY-regulated lenders to waive mortgage
payments for 90 days for borrowers who face financial hardship due to COVID-19.

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° The CFPB has provided a step-by-step guide to requesting mortgage relief for federally backed
mortgages.

° The NY Dept of Financial Services has created a comprehensive guide to seeking mortgage
relief for New York residents, including a list of qualified housing counselors in NY.

• Foreclosure Moratorium: There are active foreclosure moratorium both federally and in New York
State. The New York State moratorium that is set to expire August 20th, 2020.

• Other Housing Resources: For more information about Housing Programs and Services during the
pandemic, and updates to existing housing programs please visit Benefits Plus Online.

• Utilities:

• Electric and Gas: Con Edison and National Grid have suspended service shutoffs for residents
facing financial hardship. Please contact your service provider right away if you can’t pay your
power bill.

• Phone and Internet: Given the coronavirus pandemic and its impact on American society, 750
companies have pledged to:

° not terminate service to any residential or small business customers because of their inability to
pay their bills due to the disruptions caused by the coronavirus pandemic.
° waive any late fees that any residential or small business customers incur because of their
economic circumstances related to the coronavirus pandemic; and
° open its Wi-Fi hotspots to any American who needs them.

A full list of participating providers is here: Keep Americans Connected.

• Water: New York State has issued a moratorium on water shutoffs for the duration of the outbreak.

• Health Insurance

• Department of Financial Services in NY issued a rule that allowed consumers to delay paying their
health insurance premiums until June 1, 2020. Now that the order has expired, the state
recommends contacting your insurer to discuss payment options or for assistance with finding new
coverage.

• Special Enrollment Period: Apply for coverage through NY State of Health by phone at 855-355-
5777, or directly to insurers. The special enrollment period for uninsured New Yorkers is open until
June 15, 2020. If you lost employer coverage, you must apply within 60 days of losing coverage.

• Community Health Advocates: Community Health Advocates (CHA), a program of the Community
Service Society, provides free and confidential individual counseling about health insurance in New
York State. Staff will continue to answer the Helpline from 9-4, Monday to Friday: 1-888-614-5400
(Phone appointments only).

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Financial Obligations

Once necessities are paid for, obligations such as child support, taxes, insurance, and debt
payments should also be paid. There may be options to help those effected by COVID-19 pay for and
manage their obligations. See resources below. Obligations are listed in priority order from highest to
lowest. Please see the FCC Factsheet “How to Prioritize Paying Your Bills in a Financial Crisis”.

• Child Support

• The New York City Office of Child Support Services (OCSS) Customer Service Walk-In Center will
be closed until further notice due to COVID-19. You can also visit this website for Child Support
Services outside of NYC.

• Petitions: Beginning May 18, courts in several regions will begin accepting new petitions for child
support matters. New York State Unified Court System.

• Modify Orders: You can ask the court to modify your current obligation amount if your income has
decreased by fifteen (15) percent or more since the order was last modified. You may also file
support modification petitions, motions, and requests with the New York City Family Court by email
at NYFCSupport@nycourts.gov.

• Taxes

• Payment and Filing: The April 15 tax filing deadline has been moved to July 15th. More information
will be available at the website below. The IRS has also issued guidance allowing all individual and
other non-corporate tax filers to defer up to $1 million of federal income tax (including self-
employment tax) payments due on April 15, 2020, until July 15, 2020, without penalties or interest.

• NYC Free Virtual Tax Prep: is an end-to-end service where an IRS certified Volunteer Income Tax
Assistance (VITA)/Tax Counseling for the Elderly (TCE) volunteer preparer will video conference
with you to help prepare your 2019 tax return using a secure digital system.

° This service is available for families earning $64,000 or less in 2019 and single filers earning
$45,000 or less in 2019. Note: Volunteer preparers can also assist non-filers with stimulus
payments.

° To use this service, you must have access to a computer, tablet, or smartphone; a stable
internet connection; and the ability to download secure video conference software.

• Insurance (Auto, Home, Life, Etc.)

• New York State Dept of Financial Services has requested that all NY state regulated insurance
providers (including health, dental, disability, life, auto, home, liability, etc.) offer the following
to customers who demonstrate hardship resulting from COVID-19:

° Offering payment accommodations, such as allowing consumers to defer payments at no cost,

extending payment due dates, or waiving late or reinstatement fees;
° Working with consumers to avoid cancellation or non-renewal of insurance policies for failure to
pay premiums on time and other reasons;
° Providing flexibility regarding proof of death or other condition that triggers benefits under life
insurance;

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° Providing consumers with information and timely access to all medically necessary covered
health care services, including testing and treatment for COVID-19;
° For help with all other types of insurance, contact the NY Department of Financial Services.

• Student Loans

• The CARES Act requires federal student loan servicers to suspend payments and credit reporting
on certain federal loans during the pandemic. For more information about CARES Act student loan
forbearance eligibility and rules, go to: EDCAP - Student Loan Updates.

• CSS’ Education Debt Consumer Assistance Program provides free over-the-phone counseling and
assistance for all student loan questions and concerns. Call 888-614-5004 or email
edcap@cssny.org. All services are free and unbiased.

• Credit Cards and Other Debt

• FDIC Guidelines: The FDIC is encouraging banks to work with customers seriously affected by
COVID-19, including temporary business closures, slowdowns, or sickness. The FDIC is
encouraging banks to allow customers to skip loan payments with no adverse consequences for the
borrower, extend loan terms, and waiving late payment fees on credit cards and other loans.

• Warning! Before skipping payments or otherwise operating in a manner that differs from the terms
of a loan, contact your bank to determine its flexibility during this time. Paying your debts late or not
at all can result in penalties, interest charges, and damage to your credit score.

• New York State Dept of Financial Services has issued a rule that all NY state regulated banks and
lenders provide the following to customers who demonstrate hardship resulting from COVID-19:

° Waiving overdraft fees;

° Providing new loans on favorable terms;
° Waiving late fees for credit card and other loan balances;
° Waiving automated teller machine (ATM) fees;
° Increasing ATM daily cash withdrawal limits;
° Waiving early withdrawal penalties on time deposits (CDs);
° Increasing credit card limits for creditworthy customers;
° Offering payment accommodations, such as allowing loan customers to defer payments at no
cost, extending the payment due dates or otherwise adjusting or altering terms of existing loans,
which would avoid delinquencies, triggering events of default or similar adverse consequences,
and negative credit agency reporting caused by COVID-19 related disruptions; and more.
° For more information and updates, or to request help with a bank or lender go to: NY Dept of
Financial Services

Protecting Your Credit

On-time payment history is the number one factor in credit scoring. That is why you should always try to
make the minimum payments on your credit card and other debt if you can. Being behind or late on your
payments has a long-lasting negative impact on your credit reports and scores. Learn more about the
factors that influence your credit score visit the CFPB website here. Below are steps you should take to
protect your credit during the pandemic:

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• Contact Your Lenders:

• If you have trouble paying your bills, or loans, or can’t pay the minimum, reach out to your lenders
or creditors as soon as possible.

• The sooner you get in touch with your lenders or service providers, the more likely you will be to
avoid damaging your credit report.

• The CFPB has resources to help you discuss the impact of COVID-19 on your financial
situation with your lenders.

• Credit Reporting under the CARES Act

• The Coronavirus Aid, Relief, and Economic Security (CARES) Act requires creditors and other
service providers to comply with certain guidelines for reporting information to the credit bureaus
during the pandemic. As per the CFPB, the current guidelines are as follows:

° If your account is current and you make an agreement to make a partial payment, skip a
payment, or other accommodation, then the creditor is to report to credit reporting companies
that you are current on your loan or account. This applies only if you are meeting the terms of
the agreement.
° If your account is already delinquent and you make an agreement, then your account
will maintain that status during the agreement until you bring the account current.
° If your account is already delinquent and you make an agreement, and you bring your account
current, the creditor must report that you are current on your loan or account.
° This CARES Act requirement applies only to agreements made between January 31, 2020 and
the later of either:
° 120 days after March 27, 2020 or
° 120 days after the national emergency concerning COVID–19 ends.

• Free Weekly Credit Reports

The best way to ensure that your credit information is accurate and up to date is to regularly access a
copy of your free credit report at AnnualCreditReport.com.

• You can now get a free credit report at AnnualCreditReport.com from each of the three nationwide
credit reporting agencies ( Equifax, TransUnion, and Experian) once every week until April 2021.

• If you find inaccurate information on your credit reports, or you believe a creditor or lender has
reported information incorrectly, use the CFPB’s step-by-step guide to dispute that information, You
can also submit a complaint to the CFPB at consumerfinance.gov/complaint.

Retirement Savings and Investments

• Early Withdrawal:

Currently, workers are facing duel challenges when it comes to managing their retirement savings: financial
hardship due to job loss, and market volatility devaluing their investments. For these reasons, individuals
may have a desire to withdraw money from their IRA, 401k and 403b accounts early.

However, early withdrawals are not without pitfalls. This is because if your financial situation continues to
deteriorate, you may be unable to pay the money back, or to pay the taxes on the withdrawal. You may

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“lock in” your losses if you withdraw your money before the market recovers. It is strongly recommended
that all investors seek qualified financial advice before taking an early withdrawal from an IRA.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act, includes new provisions that
make it easier for those affected by the outbreak to access retirement funds.
° During the year 2020, no one will have to take a required minimum distribution (RMD). This
applies to all taxpayers who are otherwise required to receive an RMD in 2020.
° Individuals who need to take money from a retirement account before age 59 ½ will not have
the usual 10% penalty in 2020. They can draw up to $100,000. Individuals who take a
distribution of up to $100,000 will have three years to pay taxes on the income and can put the
money back into the account during the three-year time period. This is only for those who meet
criteria of being affected by the coronavirus. For more information: Retirement Account Rule
Suspension for IRAs, 401(k) or 403 (b).

• Free Financial Planning:

• New Yorkers who would like to speak with a qualified professional about retirement planning and
investments can do so for free through the services of the Science Industry and Business Library.
Go online to make a 30-minute phone appointment with a member of the Financial Planners
Association of New York.

Scams:

• Beware of scammers selling bogus medical treatments, vaccines, and tests, and learn the facts about
the coronavirus. There is currently no FDA-approved vaccine to prevent the disease, so ignore offers
promising otherwise. Report scammers here: FTC Website

• Warning! The government will not contact you via phone call, text, or email regarding your stimulus
payment. The government will not ask you to provide your Social Security number, bank account
number, credit card number, or any kind of upfront payment in order to receive your stimulus. Report
scams and learn more here: FTC - Coronavirus Scams

Additional Resources:
• Access NYC: Find help in NYC with food, money, housing, work and more on ACCESS NYC.

• The Community Service Society of New York is continuing to meet the needs of our constituents during
this rapidly evolving public health emergency. Call our free hotlines if you need help navigating the
COVID-19 crisis.

• CSS’ Benefits Plus Learning Center has created comprehensive guides covering a wide range of topics
on how to find federal, state and city resources for New Yorkers during the emergency state of COVID-
19.

• NYC Financial Empowerment Centers provide free one-on-one professional, financial counseling and
coaching to support you in reaching your goals. Services available in English, Spanish, Haitian Creole,
Punjabi, Russian, American Sign Language, and others. Book an appointment online and create/login
to your Financial Empowerment Portal account.

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